The Economics of Sport - Whats the Score - Coursework Example

The real results do not coincide with the planned ones. Dr. Baade refers to common families, saying that the more they become engaged with sports activities (watching professional games), the less they are engaged with other entertainment (pools, cinemas, theaters, etc.). As a result, the municipal government receives more money from selling tickets for sports activities, but less money from sports substitutes. (AtlantaFed)

It is clear, that while making plans to increase the revenues from sports, we need to think about the opportunity costs of introducing such activities. For example, the extra benefits from selling more tickets from a newly built stadium, which is much bigger than the old one, may be outstripped by the losses of movie theaters, restaurants, and children's entertainment facilities in the same city. This may happen because the stadium will be visited mostly by adults, while the movie theaters and restaurants will lose such customers as small children. They will not be able to go see cartoons, eat pancakes or ice cream, see magic shows, and ride a pony in amusement parks, as their parents will be busy preparing for and watching the professional game.

The same may happen even within the sports industry. Even though they were not designed as facilities for professional sports, they still can be considered as those, which belong to the sports industry, as they deal with amateur sports activities. Read More

 

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